Earnings Results: Broadcom stock slips after earnings as forecast fails to bring upside

by | Aug 31, 2023 | Stock Market

Broadcom Inc. shares slipped 3% in the extended session Thursday after the chip and software company delivered a revenue forecast for the current quarter that failed to offer upside versus the consensus view. The company reported fiscal third-quarter net income of $3.30 billion, or $7.74 a share, compared with $3.07 billion, or $7.15 a share, in the year-ago period.

After adjustments, Broadcom
earned $10.54 a share, compared with $9.73 a share in the year-ago quarter. Analysts tracked by FactSet were expecting $10.43 a share. Revenue increased to $8.88 billion from $8.46 billion in the year-ago quarter, while analysts were modeling $8.85 billion. See also: Dell’s stock soars as company easily beats on earnings Chip sales rose 5% to $6.94 billion from the year-ago period, and infrastructure software sales also were up by 5%, to $1.94 billion. The FactSet consensus was for $6.97 billion in chip sales and $1.89 billion in software sales. The latest results “were driven by demand for next-generation networking technologies as hyperscale customers scale out and network their AI clusters within data centers,” Chief Executive Hock Tan said in a statement. Broadcom generated $4.6 billion in free cash flow during its third quarter. The company forecast fiscal fourth-quarter revenue of about $9.27 billion, in line with the FactSet consensus. Read: Intel offers an upbeat update, and its stock is gaining Year to date, Broadcom is up 65% and the PHLX Semiconductor Index
is up 45%, while the S&P 500 index
is up 18% and the tech-heavy Nasdaq Composite
is up 35%. See also: …

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